If President Joe Biden is re-elected for another four years, Americans better be prepared to see massive tax hikes as the country faces record-high inflation.
Biden vowed to keep former President Donald Trump’s 2017 tax cuts “expired” for another four years, meaning middle-class and low-income Americans would see higher taxes beginning in 2025.
“[Trump] was proud, very proud of his $2 trillion tax cut when he was president that overwhelmingly benefited the wealthy and the biggest corporations and exploded, exploded the federal debt,” Biden said. He was referring to the former president’s Tax Cuts and Jobs Act (TCJA)— which permanently lowered corporate taxes from 35 percent to 21 percent and temporarily lowered personal income tax rates through 2025.
“There is no exaggeration here: It’s going to expire and if I’m re-elected, it is going to stay expired,” Biden continued.
The Trump campaign criticized Biden’s “bloated” recent budget proposals, saying it will be the "largest tax hike ever.”
“[It is] defined by massive spending increases and tax hikes on Americans,” a Trump spokesperson said.
As part of Biden’s Fiscal Year 2025 $7.3 trillion budget plan, Americans will see a $4.9 trillion tax hike.
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“The president is simply reiterating what’s in his budget. He would let the Trump tax cuts for big corporations and the richest Americans — those making more than $400,000 — expire, and extend the tax cuts for those making less than $400K,” a White House official said. “In fact, his budget would further cut taxes for the middle class and working families. He has said that repeatedly and in every budget. Trump and Republicans are responsible for the egregious and fiscally reckless cliff that is in the Trump Tax Cuts —they are the reason taxes will rise for the middle class after 2025.”
Republican lawmakers say the plan calls for an "unprecedented $86.6 trillion in spending” over the next ten years. They also said the country’s debt would reach $54 trillion by 2034, leading to the "largest debt in American history.”
“[Biden’s budget plan] would take nearly $40,000 away from the average American family, who is already losing thousands every year due to Biden's record-high inflation crisis,” the Trump campaign spokesperson continued.
According to the Tax Foundation, if Trump’s tax cuts were to expire, someone making $30,000 annually would pay $253.75 more in taxes in 2026. Meanwhile, if someone is making $75,000 a year, they would be forced to pay more than $1,700 more than they paid in 2025.
In addition, if a married couple with two children makes $165,000 per year, they would pay $2,450.50 more than they did the previous year. If a married couple with three kids had an income of $200,000 annually, they would pay nearly $7,500 more per year.
“When President Trump is back in the White House, he will advocate for more tax cuts for all Americans and reinvigorate America's energy industry to bring down inflation, lower the cost of living, and pay down our debt," the Trump spokesman said.
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